Moldova’s economy achieved a modest growth rate of only 0.6% y/y in January-September 2024 (chart), not far from the 0.7% y/y growth in 2023. The performance was particularly disappointing in Q3, with a 1.9% y/y decline and, in seasonally adjusted terms, a contraction of 3.1% q/q.
In nominal terms, Moldova’s GDP reached MDL316bn or €16.4bn in the four quarters to the end of September 2024, up from €15.3bn in 2023.
Both in Q3 and in January-September, robust domestic demand for both consumption and investments pushed up imports, rather than domestic supply – which was furthermore hit by weak external demand (exports) as well.
In January-September, total consumption rose by 1.9% y/y in volume terms and gross fixed capital formation by 6.8% y/y while exports (goods and services, volume terms) contracted by 2.8% y/y. Imports surged by 5.3% y/y, also in volume terms.
The overall economic activity in Moldova during the first three quarters of 2024 was dragged down by agriculture, where weak crops resulted in 16.6% y/y weaker value added generated by the sector in Q3 and a 9.9% y/y contraction in January-September.
Other sectors of the economy performed better, though: the manufacturing industry, particularly, generated 3.9% y/y more value-added in January-September.
Other sectors boasted significant annual performances: construction generated 6.0% y/y more value added, hotels, restaurants and catering (HoReCa) 5.5% y/y more, IT and telecoms 6.1% y/y more and financial/insurance 7.5% y/y more. In contrast, the logistics (transport and storage) and real estate transactions sectors lost ground.